Spahic - Bitcoin and Cryptocurrencies without prior knowledge: Understand the blockchain within 7 days

1. Foreword

Bitcoin - a topic that divides opinion. For some, Bitcoin is not only a digital currency, but a revolution against the entire financial system. Others retort that Bitcoin has no intrinsic value and you'd better sell your holdings quickly because it will soon be worthless.

Although both sides make valid points, and regardless of how one feels about blockchain technology, Bitcoin has defied all opponents in recent years. The price of a Bitcoin has soared several times, and over time Bitcoin, just like all other cryptocurrencies, has seen tremendous growth, so it at least makes sense to investigate the issue. Blockchain technology is being researched or already being used in many areas, that can no longer be denied. The revolution ahead of us is comparable to the revolution of digitalization. Who has benefited from digitalization? The people who got to grips with the matter at an early stage. Who has not benefited from digitalization? The people who were stuck on their old principles and were not open to new technologies. So it really makes sense to get to grips with new technologies like blockchain or bitcoin at an early stage.

What is Bitcoin? Is Bitcoin the same as blockchain? And what other cryptocurrencies are there?

Bitcoin is on everyone's lips, whether on public television or in private circles. A lot of half-knowledge is prevalent, and many terms are confused or used in the completely wrong context.

This is not surprisingafter all, the technology is new and relatively complex. A layman is not expected to read up to the deepest level of programming. This requires several years of computer science studies.

Nevertheless, the topic of blockchain and bitcoin is by no means as complex as it might first appear. Only a certain technical understanding and enthusiasm for the topic are necessary to understand the mechanisms.

Since you bought this book, you seem to have the enthusiasm for the subject. You want to understand the basics and the structures around Bitcoin and cryptocurrencies. Maybe you are thinking about investing in Bitcoin but want to explore the technical background first. Maybe you just want to have a say the next time Bitcoin or Blockchain is mentioned at the regulars' table. Or maybe you're a critic looking for weaknesses in the technology - because Bitcoin and other cryptocurrencies have those too!

In any case, you will not regret having dealt with the matter.

Books on blockchain technology are mostly either purely focused on the monetary aspect of Bitcoin and cryptocurrencies or written in such a technical way that they require several years of computer science studies to follow the book content.

However, these books are completely unsuitable for newcomers: page-long programme lines that you forget after a week. The result is confusion. This demotivates and quickly causes many interested people to close their minds to the subject. This is not because of the readers, but because they simply do not belong to the target group of the book. You don't have to be an Einstein to understand the technology behind Bitcoin, you just have to be motivated to deal with the matter.

And it is precisely from this way of thinking that this book has emerged.

It provides a beginner's guide for inquisitive people who want to learn the basics of blockchain, bitcoin and other cryptocurrencies without much prior knowledge.

Prerequisites and level of knowledge:

This book is suitable for anyone with a basic enthusiasm for cryptography. There is also a bit of mathematics, but at a very manageable level, so that any reader can follow along easily.

The book is suitable for beginners. The chapter contents are designed in such a way that they are understandable even without prior knowledge. Since the book is also intended to offer added value to readers with prior technical knowledge, some of the technical details of the blockchain are dealt with in detail. These details and digressions can seem daunting at first glance but are not essential for general understanding. Even as a superficial user of the technologies, however, it is useful to have the background illuminated, even if one cannot reproduce everything in the smallest detail afterwards.

In addition, many new terms are introduced. If a term needs to be looked up while reading, the index at the end of the book will help.

Since the basic knowledge of our monetary system as well as encryption techniques are essential for understanding, the first chapters deal with them specifically.

For a better structure, the following icons can be found again and again at certain points in the book:

Light bulb: Here the key points of a chapter are summarised. These statements are good for reference or if you want to skim over a subject area again.

Attention: Common mistakes are listed here. It is shown where and why one often encounters obstacles or wrong assumptions.